The Baden-Württemberg healthcare industry
The pharmaceutical industry
Baden-Württemberg is Germany’s largest pharma location. In addition to industry giants such as Roche, Pfizer and Boehringer Ingelheim, Baden-Württemberg is home to a large number of small- and medium-sized pharmaceutical companies and biotech companies with pharmaceutical research and development.
The pharmaceutical industry in Baden-Württemberg is loyal to its location and resilient in times of crisis. Of the 146 companies in the region that BIOPRO classifies within the pharmaceutical sector, 66 companies also serve as suppliers or purely as distribution companies.Currently, 90 of the 146 pharmaceutical companies are engaged in research, development, and/or manufacture in Baden-Württemberg. In 2022, these companies generated a taxable turnover of 6.75 billion euros with 24,292 employees subject to social security contributions. Most pharmaceutical companies are located in the Freiburg/Offenburg/Lörrach area (22), the Karlsruhe area (14) and the Stuttgart region(14). Hochrhein-Bodensee and Donau-Iller (Ulm/Biberach) are the two regions with the highest revenues. Companies in the Hochrhein-Bodensee region generated 18 percent of overall revenues and companies in the Donau-Iller region 17 percent. The sector reinvests around 16 percent of its turnover in research and development projects, making it the sector with the highest proportion of internal expenditure on research and development in relation to turnover1.
The portfolio of Baden-Württemberg's pharmaceutical companies ranges from novel drugs and generics to the production of herbal and homeopathic medicines. During the COVID-19 pandemic, a large number of pharmaceutical and biotechnology companies along with research institutes in Baden-Württemberg, worked on new therapies and vaccines against SARS-CoV-2, including CureVac AG, Atriva Therapeutics GmbH and the start-up Prime Vector Technologies GmbH. In Freiburg, Pfizer produces Paxlovid, the first antiviral drug against severe COVID-19 infections, at its high-containment facility, which opened in May 2022 to supply the global market.
More than 22 percent of pharmaceutical companies in Baden-Württemberg (also) produce phytopharmaceuticals. The manufacturers are often characterized by a sustainable mode of action; both ecologically - e.g. through regional medicinal plant gardens and cooperation with organic cultivation projects - as well as through social commitment.
Five pharmaceutical companies were founded in Baden-Württemberg between 2014 and 2023. These includes ViMREX GmbH, founded in 2021, which aims to develop methods in the field of cancer therapy and prevention, as well as two companies founded in 2019: ZentriForce Pharma Research GmbH in Heidelberg, which offers contract research and analysis for the pharmaceutical industry and Atvita Lifescience GmbH in Gundelfingen, which develops products and strategies to improve the therapy and diagnostics of rare lung diseases. Nowadays, it is very rare for new pharmaceutical companies to be set up with the intention of manufacturing, seeking regulatory approval, selling and carrying out research and development. The majority of pharma-relevant start-ups these days are biotech companies, service providers and contract manufacturers.
Biotechnology is an important driver of innovation in the pharmaceutical industry. A total of 276 Baden-Württemberg companies are active in research, development and/or production in the region’s biotechnology and/or pharmaceutical industries. In 2022, 39,957 employees generated 10.02 billion euros in taxable revenues.